Pennsylvania Industrial Development Authority (PIDA) provides low-interest loans for eligible businesses and is directly administered by GBDF. A variety of different industry sectors may access PIDA financing including manufacturing, industrial, agricultural, research and development, hospitality, defense conversion, recycling, construction, child daycare, retail and service, export and computer-related service enterprises.
PIDA financing can be used for land and building acquisition, construction and renovation costs, machinery and equipment purchase and working capital.
Interest Rate options
For term loans with a regular amortization:
- Fixed interest rate for the full term of the loan (up to a 15-yr. period), set at the current 10-year treasury yield + 100 basis points. Based on the current 10-year treasury yield, the fixed rate option is 5.25% for the life of the loan.
- Fixed interest rate for a seven (7) year period set at the 10-year treasury yield. After seven years, the rate will reset to the then-current 10-year treasury yield. Please note, the reset rate is limited to a 200 basis point increase/decrease. The reset rate is then fixed for the duration of the loan. Based on the current 10-year treasury yield, the rate for the initial (7) year period is 4.25%.
For 10-year term loans with a 20-year amortization period:
- Fixed interest rate for the full term of the loan (10-yr. period). This option is calculated using the 10-year treasury yield +100 basis points. Based on the current 10-year treasury yield, the fixed rate option is 5.25% for the life of the loan.
- Fixed interest rate for a five (5) year period set at the 10-year treasury yield. After five years, the rate will reset to the then-current 10-year treasury yield. Please note, that the reset rate is limited to a 200 basis point increase/decrease. The reset rate is then fixed for the duration of the loan. Based on the current 10-year treasury yield, the rate for the initial (5) year period is 4.25%.
Equipment Loans:
5.25% fixed rate for the full term of the loan.
Working capital and accounts receivable lines of credit:
5.25% fixed rate for 12-month period.
For Pollution prevention and energy efficiency loans:
2.00% fixed rate for the full term of the loan.
For PIDA-SBF account loans
5.00% fixed rate for the full term of the loan. Currently, a reset interest rate will not be available for real estate loans funded under the PIDA-SBF account as statutorily, there is an interest rate ceiling that does not allow the interest rate to exceed 5.00%.
*PIDA-SBF account loans are real estate, equipment, and / or working capital loans to eligible agricultural processors, agricultural producers, industrial enterprises, manufacturing enterprises, research and development enterprises, hospitality enterprises, defense conversion enterprises, recycling enterprises, computer-related service enterprises, construction enterprises, and child day-care enterprises, whereas the loan amount is $400,000 or less and the eligible enterprise has 100 or fewer full-time employees worldwide at the time of application submission for the full term of the loan.
For PIDA-CED account loans
5.00% fixed rate for the full term of the loan. Currently, a reset interest rate will not be available for real estate loans funded under the PIDA-CED account as statutorily, there is an interest rate ceiling that does not allow the interest rate to exceed 5.00%.
*PIDA-CED account loans are real estate, equipment, and/or working capital loans to eligible retail and service enterprises located in an eligible distressed area, whereas the loan amount is $200,000 or less and the eligible enterprise has 100 or fewer full-time employees worldwide at the time of application submission.
How Do I Apply?
The first step is to contact us to discuss your project. By learning more about your company and its needs, we can identify the financing products that are best for your project.
Contact Kayla Hayick, Director of Lending and Business Outreach, at 610.898.7761.
To proceed to the application stage, download the PA Department of Community and Economic Development checklist and prepare all relevant documents.
Examples of past projects:
Agriculture
Dustin and Amber Fessler received financing for the acquisition of a farm in Bernville, Pa. A PIDA loan of $400,000 was part of a $1,365,000 project along with financing from the Farm Service Agency, Tompkins Bank, and equity to complete the project.
“We are just so excited and grateful to have our beautiful farm to raise our kids, and have a place to bring our families together. Outside of our frequent family walks around the property and the tractor rides during field work, we’ve enjoyed starting new traditions of summer family camp outs and Winter sledding parties at our farm. It’s been a lot of hard work and a long first year of owning the property, but it has been made easier with the financial help through lower interest loans like the one through PIDA. Our family will forever be thankful for the opportunities that were made available to us over the last year. We are passionate about raising the next generation of family farmers both within our immediate family and throughout our community.” – Amber Fessler
Manufacturing
Greater Berks Development Fund (‘GBDF’) has been able to assist Plum Creek Farm Market & Creamery with PIDA funding for two separate projects. For the first PIDA loan of $1,000,000, Plum Creek demolished its existing building and constructed a 12,000-square-foot market that allowed for an expanded area for produce sales, and food/ice cream production.
In 2023, GBDF provided a $400,000 PIDA loan towards a $3.4 million project that allowed the company to build a new manufacturing facility to accommodate demand for its new line of frozen soft pretzels.
Both projects involved funding from Tompkins Bank, PIDA and SBA 504 program, allowing the company to benefit from interest rate savings from both PIDA and SBA 504.
